April 3, 2006	Monday	Rabi-ul-Awwal 4, 1427

THE opposition to the proposal for appointment of a UAE-owned Dubai Ports World (DPW) as operators of Gwadar port has come from some local experts on ports and shipping. DPW, a shipping giant has vital stakes as a regional competitor for the port.

These experts see the proposal merely from the point of view of ‘conflict of business interests.’ They believe that Gwadar may turn out to be a threat to many hub ports in the region.

Gwadar lies on main shipping lanes. While hub ports of the Gulf are located on western side of Gwadar, Sri Lanka and Indian ports are on its eastern side. Gwadar is strategically located outside the sensitive area of Strait of Hormuz, a major conduit for global oil supplies in the region. The port came into worldwide focus during first Gulf war when shipping lines were confronted with security issue.

The DPW’s acquisition deal for management rights in the United States and consequently its acquisition is currently in pending for the approval of the American government, while its new deal in Pakistan for Gwadar port would involve only management rights.

Some experts view Gwadar as a hub port for the country’s other ports operating as feeder ports. Presently, the country’s cargo is being trans shipped through Sallalah or Dubai ports but after coming up into operation, Gwadar could compete with them, not only saving time but also revenue.. The opportunity for Gwadar port to become natural choice for major shipping lines should not be missed.

Gwadar is expected to serve as mother port at an strategic location. It has the potential to provide port, warehousing, trans-shipment and industrial facilities and trade with over 20 countries including Gulf states, Central Asian Republics, Iran, East Africa, Red-Sea countries and North West parts of the Peoples Republic of China and India.

The Port of Salalah is located on the major Asia Europe trade route which is the fastest growing trade lane in the world. Situated at the southern tip of Oman, its excellent geographical location makes it the ideal hub for the Middle East, Indian Sub-Continent, Red Sea and East African markets. Opened in November 1998, it has already achieved 1 million TEU per year and has set world records in productivity. The port has the capable of handling the next generation of 10-12,000 TEU vessels and has placed the city of Salalah on the global map.

The coastal belt of Balochistan is stretched for over 770 km- from the mouth of Hub River near Karachi right up to Gwadar Bay near Chahbahar. Chahbahar in south western Iran is likely to become a stronger competitor of Gwadar port to the transit trade for Afghanistan, Central Asia and even China. Chahbahar is considered as the economic gateway to world due to its location on the Oman sea shore outside the Strait of Hormuz. The port shortens the inland link to CIS countries up to 100 km. It provides the shortest access to Central Asia and to Middle East.

Pakistan had contacted several international companies to independently operate the Gwadar port after its completion by June this year. A number of foreign companies, including one from China, had shown their willingness to operate the port.